In New York, an estate is subject to state taxes in addition to federal taxes. Taxes are the common challenge most people think about when they create an estate plan, but there are additional factors you should be aware of, such as passing down your business and assigning a trustee to your trust.
Estate taxes could take a huge chunk out of the estate you pass down to beneficiaries. It’s worth considering tax-saving strategies for estate planning. Trusts, donations, and gifts are some of the ways you could ease your tax burden. You might eliminate the cost of probate by setting up trusts. Some trusts have additional tax advantages as well.
Passing down the family business to one of your children might not be the best option. When the beneficiary doesn’t have an interest in the business, it can suffer. You may decide that you want to choose another relative or a non-relative in an attempt to keep your business going as long as possible.
Choosing the right trustee for your trust is important. The wrong trustee may mismanage it. You should carefully consider choosing someone because it’s not just how much you trust them that matters: Their age and health may influence your plans because you don’t want the trustee to die while your beneficiaries are still young. It’s possible to choose a professional as your trustee if you can’t think of a family member or friend.
Putting together your estate plan will require some thought. There are several common concerns to work through, including how taxes impact the estate, who’s best to take over your business, and who any trustees will be.